(Adds Wall Street open; updates dateline, byline; updates
* Wall St hits new highs
* Trump promises "phenomenal" tax reform, no details
* Strong Chinese trade data lifts Europe, Asia
* Eyes on Trump-Abe meeting in Washington
By Hilary Russ
NEW YORK, Feb 10 Wall Street hit records highs
for a second day and the dollar rose on hopes of
business-friendly tax cuts, as upbeat Chinese trade data buoyed
commodity-related shares in Asia and Europe.
The equities boost continued a day after U.S. President
Donald Trump said that in coming weeks he would announce
something "phenomenal" in terms of tax, although he offered no
Renewed speculation that Trump's policies will help boost
economic growth and inflation pushed U.S. Treasury yields higher
and lifted the dollar, which hit an 11-day high against a basket
of six major currencies.
The greenback also rose on expectations of a constructive
meeting later on Friday between Trump and Japanese Prime
Minister Shinzo Abe.
Strong Chinese trade numbers on Friday added to a sense that
inflationary pressures could be stirring.
China stocks posted their biggest weekly gains in more than
two months, led by infrastructure and material shares on new
pledges for transport and infrastructure building.
China's President Xi Jinping also had a cordial telephone
conversation with Trump, in which Trump affirmed the one-China
policy on Taiwan.
Both the blue-chip CSI300 index and the Shanghai
Composite Index were about 0.5 percent higher.
"We've had Trump's comments on tax reform, the phone call
with China and quite decent China trade data, so there is a
risk-on mood again in markets," DZ Bank rates strategist Rene
The Dow Jones Industrial Average rose 65.34 points,
or 0.32 percent, to 20,237.74, the S&P 500 gained 5.23
points, or 0.23 percent, to 2,313.1 and the Nasdaq Composite
added 12.84 points, or 0.22 percent, to 5,728.02.
Benchmark U.S. 10-year Treasury note yields rose
to a session high of 2.43 percent after the release of the
imports data, which showed prices increased 0.4 percent in
European shares were off the day's peaks, weighed
down by banking shares. They are still poised to close the week
about 1 percent higher.
Healthy corporate results and the continued uptick in
European dealmaking, which is seeing its strongest start to the
year in more than a decade, helped underpin valuations.
Reckitt Benckiser has agreed to buy U.S. baby formula
maker Mead Johnson Nutrition for $16.6 billion, giving
the British consumer goods company a new product line and
expanding its presence in developing markets.
Meanwhile, analyst sentiment on European earnings is the
brightest it has been in six years, while U.S. fourth-quarter
earnings are forecast to grow 8.5 percent, according to Thomson
However, lingering concerns over political risks kept gains
The week has seen heightened fears about euro zone political
risks with French bond yields climbing to a 17-year high as
fears about a strong showing for far-right leader Marine Le Pen
ahead of a presidential election rattled markets.
Societe Generale, however, said the "Armageddon risk" ahead
of the French elections is overdone.
In commodities, oil prices extended gains supported by
strong Chinese crude imports, as well as reports that OPEC
members delivered more than 90 percent of the output cuts they
Benchmark Brent crude was 2.00 percent, or $1.11,
higher at $56.74 per barrel at 1625 GMT.
U.S. West Texas Intermediate (WTI) crude was trading
1.85 percent, or 98 cents, higher at $53.98.
(Additional reporting by Vikram Subhedar in London; Luoyan Liu
and John Ruwitch in Shanghai; Yashaswini Swamynathan in
Bengaluru; Editing by Toby Chopra and Nick Zieminski)